Zimbabwe government announced a lockdown that restricted companies from fully doing business. The lockdown, that has been extended to indefinite, has negatively affected companies with the Zimbabwean economy being characterised by low income.
The following is how different companies are reacting to survive the lockdown.
Clothing Retail, Edgas Chairman T. N Sibanda says the management will continue to devise adequate survival strategies to preserve the Group’s balance sheet.
“Post Covid-19, clothing retail will not be the same and the Group is pursuing various initiatives to future proof the business,” Sibanda says.
FBC bank has adapted to the new order which this includes the offering of services and products using digital platforms according to the company secretary Tichaona Mabeza.
“This will ensure that our customers continue to access our services with minimal disruption. The Group will remodel and realign business structures in view of the need to ensure the safety of all stakeholders whilst at the same time ensuring the viability of all business units,” Mabeza says.
Tiles producer, Turnall says if the lockdowns in Europe are eased soon, the impact on the firm’s supply chain would not be significant.
“The Group imports most of its raw materials and spares from Europe, which was severely affected by the pandemic. The impact on the Group’s supply chain is minimal as the Group had significant stocks that had been shipped when the lockdowns started,” Turnall Board Chairperson Likukuma says.
TSL, whose products were rendered essential service also faced challenges and ensured containment of costs to ensure that the business can continue for the long-term.
The group ensured liquidity (how easily assets can be converted into cash), solvency (the ability of a company to meet its long-term debts and financial obligations)and funding management to ensure the resilience of the firm according to company secretary James Machando.
Meikles Limited Company secretary T. Mpofu says the lockdown caused certain commercial difficulties, but management has an appropriate response to the challenges.
“Overall, the Group believes that it will progress in a satisfactory position of financial strength and profitability in the foreseeable future, within targets of performance established before the advent of COVID-19,” Mpofu says.
Meikles’ Victoria Falls Hotel has financial resources of its own to survive a prolonged period of closure on care and maintenance.